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SEPHAKU HOLDINGS LIMITED - Resignation of Chief Executive Officer

Release Date: 25/07/2019 16:30
Code(s): SEP     PDF:  
 
Wrap Text
Resignation of Chief Executive Officer

Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
(“SepHold” or “the Company”)


Resignation of Chief Executive Officer

SepHold hereby announces that the Chief Executive Officer (“CEO”), Dr. Lelau Mohuba (“Dr.
Lelau”) has informed the board of directors of SepHold (“the Board”) of his intention to resign as
an executive director with effect from 31 December 2019. Dr Lelau will however remain
available in a non-executive capacity to support the Company, if required.

Dr. Lelau was a founding SepHold board member and group chairman from 2005 to 2012. He
subsequently became the CEO during 2012 when the group introduced an independent
chairman in compliance to the King Code. Between 2010 and 2012 SepHold established the
partnership relationship with Dangote Cement PLC (DCP) to become the first cement
manufacturers in South Africa in over 80 years. The partnership birthed Dangote Cement South
Africa (Pty) Ltd, the producer of the Sephaku Cement (“SepCem”) brand, as a subsidiary and
associate of DCP and SepHold respectively.

SepHold commenced business in 2006 as a mineral exploration company predominantly owned
by historically disadvantaged South Africans. The main goal was to seek lucrative opportunities
resulting from the transformative amendments to the Minerals and Petroleum Resources
Development Act of South Africa (2002). SepHold was then listed on the JSE in 2009 as an
investment holding entity with interests in limestone, fluorspar, gold and nickel.

Limestone and fluorspar resources were quickly identified and proven as the most viable
reserves in SepHold’s portfolio. This resulted in SepHold unbundling its non-core exploration
assets in 2010.The development of limestone into an integrated cement business progressed
faster than the fluorspar project and another decision to unbundle fluorspar was made in 2012,
in order to create a focused cement manufacturing business which would develop into a unique
income-generating asset for SepHold’s shareholders. This development phase consisted of
recruiting an experienced leadership team, proving the viability, obtaining statutory approvals,
raising the funding for the project and constructing the most efficient cement plant in South
Africa.
The Company then acquired a renowned and profitable mixed concrete business in 2013 called
Métier Mixed Concrete (Pty) Ltd (“Métier”) to complement the cement business.

The acquisition of Métier began a new era for SepHold in which the focus was translated from
being purely in the development phase to income generation. Maximising income from
SepHold’s core investments in cement and ready-mixed concrete has been the Company’s
focus over the past several years to ensure repayment of the SepCem project debt as well as
expediting the launching of a dividend stream to its shareholders.

Commenting on his tenure, Dr Lelau remarked, “The time has sadly come for me to hand over
the baton, due to my health challenges, after 14 years of active involvement in building a dream
in which I still strongly believe. I leave a robust Company albeit in a depressed economy and am
cognisant that there will be challenges in the short to medium term. However, I am confident
that SepHold will persevere and enter an exciting period in its history. I avail myself to SepHold
shareholders for any non-executive role deemed fit, and to support the enduring stakeholder
relationships we have built over the many years. I wish the whole team the best of luck going
forward and may God bless all of us.”

The Chairman of the Board, Mr. Brent Williams, confirmed that the Remuneration and
Nominations Committee has been tasked with determining the optimal management structure
for the Company that is aligned to the prevailing challenging operating environment. Possible
structures that will have no adverse impact on the SepHold’s costs will be explored. Further
details will be provided on this transition as the information becomes available.

Commenting on Dr. Lelau’s resignation, Williams said, “I would like to thank Lelau for his service
and leadership of the Company and for his unwavering commitment to SepHold, related entities,
the industry and our stakeholders over his long tenure. Lelau has developed and led a
committed team, each of whom plays an integral role in the everyday running of our group of
companies. We are saddened to see him leave but we are so grateful for his courage in being
part of the founding team who pursued what seemed to be an incredulous dream to disrupt the
building materials industry through modern production plants and an expert management team
with extensive industry knowledge. We wish Lelau the very best in his future endeavours and
hope to continue working with him on part-time basis and continue to tap into his deep
understanding and ability to engage with our broad stakeholder base.”

Centurion
25 July 2019
____________________________________________________________________________
Enquiries contact: Sakhile Ndlovu            Sephaku Holdings             Investor Relations              012 612 0210

Sponsor to Sephaku Holdings: Questco (Pty) Ltd
About Sephaku Holdings Limited

Sephaku Holdings Limited (“SepHold”) is a building and construction materials company with a portfolio of investments in the
cement sector in South Africa. The strategy of SepHold is to generate growth and realise value for shareholders through the
production of cement and ready mixed concrete in Southern Africa. The company’s core investments are a 36% stake in Dangote
Cement South Africa (Pty) Ltd (formerly Sephaku Cement (Pty) Ltd) and 100% in Métier Mixed Concrete (Pty) Ltd.

Date: 25/07/2019 04:30:00
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